Since they put the high cost production on care an maintenance. Profit should not be too far away...presumably the quarter after this one. Although the profit and revenue will be capped to a far lower level than before.
Changing from loss making to profit will provide breathing room to continue with the strategy in a more managable fashion - reinstating higher cost production as resource prices (and currencies and costs) allow.
The SP fell since management didn't provide as promised, but assuming the care and maintenance puts us into profit, albeit smaller than hoped, there will at least be a solid floor under the SP. Companies that have continuing losses and capital raisings continue on the down trend. Companies that return to profit generally stop falling.
Reducing costs and stopping high cost production seems like a safe short-term strategy to stop the losses and return to profit.
KZL Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
